The Munich-based Ifo economic institute told that in November its business climate index, built around a monthly poll of some 7,000 companies, headed south to 117.2 from an upwardly updated outcome of 117.6, which turned to be the highest level on record.

The December result was lower than a Reuters consensus estimate for 117.5.

Political uncertainty in Germany has also put pressure on the common currency. On Friday, Germany’s Social Democrats decided to start negotiations in forming another government with Angela Merkel’s center-right party for the purpose of ending a political deadlock.

Meanwhile the common currency rallied versus the British pound, with EUR/GBP adding 0.25% trading at 0.8823.